Advances in communications technology have changed the way many markets work. For example, in many areas, widespread availability and access to the Internet has benefited buyers and sellers of goods and services by providing easy access to pricing and market information. Unfortunately, this easy access to information is not available to everyone. For example (using an example that will be carried throughout this application), many sellers and producers of agricultural products may have difficulties finding buyers willing to buy their goods for a fair value.
Over half of the world's population derives their primary income from farming. The percentage is highest in the developing world. For example, the Indian economy is vast, having a population of over one billion, a resource-rich land mass, and one of the world's largest manufacturing sectors. The diverse Indian economy encompasses both traditional village farming and modern agriculture. About 24% of India's gross domestic product is derived from the agricultural sector that employs about 66% of the population. However, the overall literacy rate of India's population is only 65%. The land area under cultivation has risen steadily and is now greater than half of the nations land area. Major crops include rice, wheat, cereals, pulses, food grains, oilseeds (soybean, groundnut, sunflower, mustard, and rapeseed), sugarcane/sugar, cotton, jute, and fruits.
Many farmers, even in extreme rural locations, now have access to cellular or portable telephones (generally referred to herein as “mobile telephones” or “mobile phones”). For example, the mobile phone market in India is the world's fastest growing mobile market, having currently over 76 million mobile users. Thanks to intense competition, consumers enjoy low call rates and access to networks. For example, India enjoys the world's lowest call cost, with rates at less than two (2) U.S. cents per minute.
Most farmers lack access to foreign markets, financial services, and news regarding commodity, weather, and political developments. The lack of access to this information can stifle growth in the agricultural sectors of developing countries like India. Since farmers often lack relevant and up-to-date information when bringing their produce to market, middlemen who typically have better knowledge of agricultural commodity pricing information, weather information, and news may be able to take advantage of the farmers lack of access to information.
The increasingly large growth of mobile phone usage in rural areas has dramatically removed one of the biggest obstacles of the agricultural community to access the information they need—connectivity.